Charging Order and Interest

[Maylix]

Hi Can anyone help with this minor question:
If I have a charging order in my favour of '£20,000 together with any further interest becoming due and £147 the costs of the application',
I understand that the statutory rate of 8% simple interest is applied to the amount, but is the £147 added to the amount owing before the interest is calculated, or after. (i.e. do the costs attract interest).
(Oh, and if anyone knows a reliable simple interest calculator on the web that I could use to calculate the interest between two dates, that would be useful, otherwise I can use Excel)
TIA
Maylix

[PinkDalek]

Interesting and I don't know the answer but I'm sure someone will.

https://www.gov.uk/make-court-claim-for ... t-interest is unclear but it includes how to calculate, which you can plug into excel. The wording you've extracted seems to suggest not, in view of the order in which it is written.

I seem to remember discussing this with RedSturgeon but I don't recall the precise nature of the discussion. I think the interest had to be invoiced separately but that may have been business to business (Interest on late commercial payments). Is yours a personal debt?

No help really, do wait for those who know what they are talking about to clarify.

Edit: I've just looked at my Witness Statement (drafted by solicitors) regarding a charging order, from a couple of years back. Interest was not calculated or charged on the Claimants’ costs. The Witness Statement did include "Interest continues to accrue at a daily rate of £X.XX.

Further edit: The subsequent Order for Sale appears to charge interest on the Judgment debt, the original interest and the costs.

Far too complicated for me.

[Maylix]

Interesting and I don't know the answer but I'm sure someone will.

The wording you've extracted seems to suggest not, in view of the order in which it is written.

Thanks PD, yes, the order does seem to suggest that, but if someone more knowledgeable could confirm that would be great. And thanks for the link on the calculation, I hadn't come across that, but that was how I was going to do it using excel if I didn't have a website to plug the amount and dates into.
Cheers
Maylix

[Clitheroekid]

I understand that the statutory rate of 8% simple interest is applied to the amount, but is the £147 added to the amount owing before the interest is calculated, or after. (i.e. do the costs attract interest).

Yes.

[Maylix]

Yes.

Ta.

[chas49]

Yes.

Ta.

"Yes" to which, though? (Just asking for future readers of this thread...)

[PinkDalek]

I’d assumed the part in parentheses:

(i.e. do the costs attract interest).

[Clitheroekid]

Sorry, I was on my way out - yes, costs carry interest in the same way as the judgment debt

[pochisoldi]

Just out of curiosity, does interest continue to accrue on the debt after the charging order is issued?
Or does this depend on what is asked for and the wording of the order when it's issued?
PochiSoldi

[Maylix]

Just out of curiosity, does interest continue to accrue on the debt after the charging order is issued?
Or does this depend on what is asked for and the wording of the order when it's issued?
PochiSoldi

Hi PochiSoldi,
Don't know (I've forgotten) if you have to ask for it as part of the (getting a charging order) process, or if it's given by default, but yes, the interest continues to accrue, at the statutory rate of 8% simple interest. Would have to really, otherwise the value of the debt would erode over time through inflation.
HTH
Maylix

[Clitheroekid]

Just out of curiosity, does interest continue to accrue on the debt after the charging order is issued?

Yes, provided the sum is over £5,000. It's because it's a judgment debt, and such debts automatically carry interest under section 17 of the somewhat ancient Judgments Act 1838 (in the High Court) and under section 74 of the County Courts Act 1984 (in the County Court).